Corporate guarantee not discharged by approval of resolution ...

Corporate guarantee survives IBC resolution plan for principal borrower. SC affirms guarantor's liability. NCLAT upholds admission against guarantor.

Case Laws Insolvency and Bankruptcy

July 8, 2024

Corporate guarantee not discharged by approval of resolution plan for principal borrower under IBC. Supreme Court judgments in Lalit Kumar Jain, Maitreya Doshi, and Ajay Goenka affirm guarantor's liability survives resolution plan approval. NCLAT upholds admission of section 7 application against corporate guarantor despite resolution plan for principal borrower, finding no infirmity. Appeal against admission dismissed as guarantor's submission of guarantee termination rejected given substantial unpaid debt and inadequate upfront cash payment under resolution plan.

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Corporate guarantee not discharged by approval of resolution ...

Corporate guarantee survives IBC resolution plan for principal borrower. SC affirms guarantor's liability. NCLAT upholds admission against guarantor.

Case Laws Insolvency and Bankruptcy

July 8, 2024

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